Since November 2016, a nationwide injunction has prevented the Obama
Administration’s new overtime rule for white collar workers from going into
effect. The Obama-era rule, which increase the minimum annual salary
required to support exempt status from $23,660.00 to $47,476.00, was poised to
convert millions of employees from exempt to non-exempt from the FLSA’s
overtime rules. Many employers re-classified employees, increased salaries
or both in an effort to comply with the new standard, which was scheduled to
take effect in December 2016. Since the injunction, those same employers
have awaited clarification on whether the rule, or a modified version, would go
into effect.

Based on a brief filed with the Fifth Circuit by the United States
Department of Labor (“DOL”) on June 30, 2017, it appears the DOL will continue
to pursue its authority to set a salary minimum for the white collar
exemption. It also appears that if granted the authority to set a
minimum, the DOL will set a minimum perhaps appreciably lower than the
$47,476.00 chosen by the former administration.

Ultimately, employers will continue to await a decision regarding what
if any new salary minimum may be promulgated. However, for the time being,
it appears that any change to the standard will not be as significant as the
previously anticipated increase.